There’s a lot at stake when it comes to vendor onboarding. One slip-up can result in major fraud and compliance issues or strained vendor relationships. But many organizations are putting themselves and their vendor relationships at risk by relying on manual processes for onboarding suppliers. Finance and procurement teams waste lots of time … Secure Vendor Onboarding
Do you have controls on managing vendor information and the vendor master file? Do you follow them? Experienced managers will say, “Duh.” However, others can use a reminder, so here it is. “With commerce comes fraud,” says Nathan Blecharczyk, co-founder of Airbnb. The Association of Certified Fraud Examiners (ACFE), in its 2020 Report to the … Why Vendor Controls and Confirmations Are Critical
Several important factors are involved in vendor onboarding, but these can make an inefficient process. Onboarding begins, naturally, with the collection of the requisite information. How an organization collects vendor data touches on accuracy versus error, completeness, privacy and security. An organization must validate vendor data to meet compliance requirements and ensure accuracy of the … How to Gain Efficiency in Vendor Onboarding
Compared to IRS Form 1042-S, Foreign Person’s U.S. Source Income Subject to Withholding, completing and filing IRS Forms 1099-MISC and 1099-NEC is easy! But now Form 1042-S filers have help. The IRS has announced the launch of a new online tool that enables “withholding agents” (that would be accounts payable departments, among others) to run … IRS Launches Online Tool to Review 1042-S Data Before Filing
As companies chase down vendors’ missing taxpayer identification numbers (TINs), it is helpful for the master file or AP staff to know what they are looking for. If the TIN is wrong, it might not be immediately apparent. But if the TIN is “obviously incorrect,” as the IRS calls it, the IRS treats it the … How to Know If a Vendor TIN Is Incorrect
In the fourth quarter, accounts payable personnel must start planning for annual payment information reporting responsibilities, also known as 1099s. If you follow this newsletter regularly, you know what that entails. However, if you are new to 1099s or accounts payable (AP), here is essential information. Organizations, including not-for-profits as well as businesses, must report … 3 Things about IRS Form W-9
It’s late September and time to plan for 1099 reporting for 2021. That means checking your vendor master for missing taxpayer-identification numbers and classifications and formulating a plan to collect and verify them by the end of the year. It also means preparing for this year’s form changes. Last year saw changes to the 1099-MISC … Time to Check Your TINs, Plus: 1099-MISC and NEC Form Changes
IRS Adds Multi-factor Authentication As is widely known, organizations with 250 or more 1099s must file them electronically. To do so, they first must register on the IRS FIRE (Filing Information Returns Electronically) System site and apply for a Transmitter Control Code (TCC), which is necessary to file 1009s and other tax forms via the … 1099s: IRS FIRE System Adding Greater Security
Vendor onboarding best practice includes getting a vendor’s tax identification number and classification on a W-9 or equivalent W-9 upfront with other vendor information. But what do you do if the vendor fails to give you that information? You’re going to need it. Ask Again Here are steps to take. The first is to ask … What To Do When a Vendor Doesn’t Submit a W-9
Vendor Information To do business with a vendor, you must have information. Vendor onboarding is the time to gather and validate the particular information you need. All organizations require the same basic information. Likewise, everyone must do certain validations. But some information requirements and validations depend on your organization type and perhaps even on your … The Necessary
Ready, set … check your vendor tax IDs. We’re well into the 4th quarter. It’s time to think about 1099 reporting. That means having correct tax IDs for your vendors. First, you need to be sure you have a tax ID for each vendor. Second, you will save trouble later if you take the time … Preparing for Tax Reporting Season: Changes Ahead
Have you gotten yours? Not tricks or treats, nor a political surprise. The other October surprise: CP2100s! Twice a year, in spring and fall, the Internal Revenue Service (IRS) sends out forms CP2100 and CP2100A. They address missing or incorrect taxpayer-identification numbers (TINs) on 1099 payment reporting. Whether you get a form 2100 or 2100A … October Blues: B Notices and Backup Withholding
